<PAGE>

                              [CHICAGO RIVET LOGO]
                          Chicago Rivet & Machine Co.
                               2001 Annual Report
<PAGE>

[CHICAGO RIVET LOGO]
--------------------------------------------------------------------------------

HIGHLIGHTS

<Table>
<Caption>
------------------------------------------------------------------------------------------
                                                    2001           2000           1999
------------------------------------------------------------------------------------------
<S>                                              <C>            <C>            <C>
NET SALES AND LEASE REVENUE....................  $40,443,010    $45,423,263    $49,080,257
NET INCOME.....................................    1,792,270      2,656,161      3,454,291
NET INCOME PER SHARE...........................         1.85           2.60           3.00
DIVIDENDS PER SHARE............................          .97           1.07           1.07
NET CASH PROVIDED BY OPERATING ACTIVITIES......    5,287,476      4,773,144      5,283,240
EXPENDITURES FOR PROPERTY, PLANT AND
  EQUIPMENT....................................    1,431,698      2,125,189      1,709,527
WORKING CAPITAL................................   11,616,424     12,001,291     12,447,590
TOTAL SHAREHOLDERS' EQUITY.....................   22,372,924     21,518,773     23,887,278
COMMON SHARES OUTSTANDING AT YEAR-END..........      967,132        967,132      1,138,096
SHAREHOLDERS' EQUITY PER COMMON SHARE..........        23.13          22.25          20.99
</Table>

TRANSFER AGENT AND REGISTRAR

EquiServe Trust Company, N.A.

STOCK EXCHANGE

The Company's stock is traded on the American Stock Exchange (Ticker symbol CVR)

ANNUAL MEETING

The annual meeting of shareholders
will be held on May 14, 2002 at 10:00 a.m. at
901 Frontenac Road

Naperville, Illinois 60566

Chicago Rivet & Machine Co. - 901 Frontenac Road - P.O. Box 3061 - Naperville,
Illinois 60566 - Telephone: (630) 357-8500
--------------------------------------------------------------------------------
<PAGE>

MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

TO OUR SHAREHOLDERS:

RESULTS OF OPERATIONS

    The economic malaise that adversely affected our business during the latter
portion of 2000 continued to be the dominant force impacting our business
throughout 2001. Eventually, the economy was officially declared to be in a
recession, and as the effects of this recession became more widespread during
2001, demand for our products continued to weaken. Within the fastener segment,
customers responded to the worsening economic conditions by reducing inventories
and reducing production, which translated into further reductions in purchasing
activity. This same set of circumstances impacted demand for perishable tools
and repair parts within our assembly equipment segment, where revenues from the
sale of new automatic assembly equipment weakened considerably as activity
within that sector of the economy fell to its lowest level in nearly ten years.

    In response to these conditions, we reduced production schedules, trimmed
inventories and moved to control costs to the greatest extent possible, all of
which contributed to results that were respectable in view of overall economic
conditions. In addition, we completed initiatives that should allow us to expand
our market share in certain niche areas.

2001 COMPARED TO 2000

    The effect of the current recession is apparent in the comparison of
revenues and margins between 2001 and 2000. Net sales and lease revenues fell to
$40,443,010 in 2001, a decline of 11% compared to 2000. This lower level of
operations was the primary factor contributing to the decrease in gross margins,
which fell to $9,187,046 for 2001, compared to $11,943,030 reported for 2000.

    Revenues within the fastener segment declined 8.5% and amounted to
$32,704,142 during 2001. This decline stems from the combination of lower
volumes for existing business, partially offset by successful efforts to win new
business from both new and existing customers. Gross margins within this segment
declined from 22.3% in 2000 to 19.9% for 2001. During the year, the Company was
able to take advantage of softness within the raw materials market, successfully
negotiating price reductions for certain raw materials and supplies.
Unfortunately, the positive contribution from those activities was offset by
increases in the cost of health insurance and a somewhat higher cost for
perishable tooling. Other than those two areas, we were generally successful in
reducing our variable costs in a manner consistent with the reduced level of
operations. Fixed costs, as would be expected, remained relatively unchanged
despite the reduced levels of operations.

    The domestic metalworking machinery market suffered a significant decline in
2001, with overall activity falling to its lowest level in nearly a decade.
These conditions were plainly evident in the results of operations within our
assembly equipment segment. Revenues fell to $7,738,868 during 2001, compared to
$9,687,564 recorded during 2000. Despite our efforts to reduce costs and manage
the negative effects of lower volumes, we were unable to cut costs as quickly
and as deeply as demand declined. Because we believe that this downturn is of a
cyclical nature, we made a decision to attempt to maintain as much of our
skilled workforce as possible, rather than attempt to match volume declines with
a wholesale reduction in the workforce. As a result, labor and benefit costs
remained at levels somewhat higher than might otherwise be expected given recent
business conditions. On a short-term basis, we view this as the most practical
response to what we believe will be a temporary situation. We were able to
achieve only limited reductions in fixed costs compared with the prior year. The
net result was an overall decline in gross margins, which fell to approximately
35% in 2001, compared to 42% recorded in 2000.

    Selling and administrative expenses declined significantly compared with the
prior year. Successful completion of the first phase of implementation of new
data processing systems resulted in a significant reduction in consulting
expenses compared with the prior year. In addition, salary and benefit expenses
declined significantly due to reductions in headcount, achieved mainly through
attrition. Sales commissions and profit sharing expense declined to levels
consistent with the lower sales volume and lower income, respectively.
Unfortunately, bad debt expense increased by a net amount of $114,000, mainly
due to the third quarter bankruptcy filing of a certain customer.

    Lower prevailing interest rates, combined with lower debt, resulted in a net
interest expense reduction of $61,000.

2000 COMPARED TO 1999

    In 2000, conditions in our major markets tended to weaken as the year
progressed. As a result, net sales and lease revenues declined to $45,423,263 in
2000. On an overall basis, this represents a decline of 7.5% compared to the
record level of $49,080,257 recorded in 1999. Revenues within the fastener
segment, which began 2000 at a slightly stronger pace than in the prior year,
ended the year at $35,735,699, a decline of 4.7% compared to 1999, as the second
half of the year was characterized by business levels that were sharply lower
than the preceding six months. This downturn is attributable to a decline in the
level of activity within the motor vehicle and automotive parts sector of the
economy upon which we depend for the majority of our fastener revenues. Within
the assembly equipment segment, demand was comparatively soft early in the year,
and became weaker as the year progressed. As a result, revenues for the full
year declined approximately 16% compared to 1999, totaling $9,687,564 during
2000.

--------------------------------------------------------------------------------

                                                                               1
<PAGE>
MANAGEMENT'S DISCUSSION
(Continued)
--------------------------------------------------------------------------------

    Given the reduced operating levels, gross margins within the fastener
segment declined compared to the prior year. However, there were other
significant factors that impacted gross margins. Among them were increases in
wage levels necessary to retain skilled labor in the face of very tight labor
markets, increases in the cost of tooling and supplies used in manufacturing,
significantly higher costs for health insurance and higher depreciation expense
associated with recent investments in new manufacturing equipment. While
competitive situations continued to hamper our ability to recover the higher
costs outlined above, favorable conditions in the market for raw materials
enabled us to negotiate modest reductions in the prices paid for certain raw
materials. Overall, however, the combination of lower volume and generally
higher manufacturing costs caused gross margins, within the fastener segment, to
fall to 22.3% compared to 23.9% in the prior year.

    During 2000, revenues within the assembly equipment segment declined
approximately 16% compared to 1999. Most of this decline was a function of
reduced unit sales, as demand was comparatively weak throughout the year. Gross
margins declined from approximately 45% in 1999 to 42% in 2000, due in part to a
continued shift toward lower priced and lower margin equipment, and also due to
the impact of higher health insurance costs. Most other costs of manufacturing
were reduced to levels consistent with the lower operating levels.

    Selling and administrative expenses declined 3.6% compared with 1999. Costs
incurred in connection with the implementation of new data processing systems
declined substantially compared with 1999, but still remained at higher than
normal levels for most of the current year. Both commission expense and profit
sharing expense declined in proportion with the decline in sales and profits,
respectively. Offsetting these changes were professional fees incurred in
connection with the Company's "Dutch auction" tender offer, higher health
insurance costs, and increases in salary expense.

    Interest expense increased approximately $123,000 due primarily to
additional borrowing in connection with the tender offer and, to a lesser
extent, higher interest rates.

DIVIDENDS

    The Company paid four regular quarterly dividends of $.18 per share during
2001. In addition, an extra dividend of $.25 per share was paid during the
second quarter of 2001, bringing the total dividend distribution to $.97 per
share. On February 18, 2002 your Board of Directors declared a regular quarterly
dividend of $.18 per share, payable March 20, 2002 to shareholders of record
March 5, 2002. This continues the uninterrupted record of consecutive quarterly
dividends paid by the Company to its shareholders that extends over 68 years. At
that same meeting, the Board declared an extra dividend of $.15 per share,
payable April 19, 2002 to shareholders of record, April 5, 2002.

MACHINERY AND EQUIPMENT

    The Company invested approximately $1.4 million in machinery, equipment and
building improvements during 2001. The total amount of investment was lower than
in the recent past, and, as has been the case for the past several years, the
majority of these expenditures were related to the fastener segment of our
operations. Specifically, a total of $1.1 million was expended for the purchase
of equipment used directly in the manufacture of fasteners and $88,000 was
invested in new equipment related to the quality control process in fastener
manufacturing. $129,000 was expended in connection with data processing and data
communications equipment, $61,000 was spent for building improvements, primarily
related to the fastener segment of our business, and the balance was expended
for a variety of smaller machinery and equipment, including the manufacture of
automatic rivet setting equipment that is leased to our customers.

    Capital investments totaled approximately $2.1 million during 2000. Slightly
over $1.9 million of this total was invested in new equipment related to the
production of fasteners. Of the amount expended within the fastener segment,
$1.5 million was invested in new cold heading and thread-forming equipment and
certain support equipment. This equipment will be utilized to expand our
capacity to manufacture certain specialty products for which demand has exceeded
our capacity. Certain obsolete heat treating equipment was replaced at a cost of
$276,000. The balance was expended for various smaller projects, including new
quality control equipment and building improvements. Within the assembly
equipment segment, capital expenditures totaled $150,372, primarily for the
replacement of machine tools used in the manufacture of perishable tooling that
is sold to our customers. The balance was expended for data processing equipment
and various office equipment.

    Investments in machinery and equipment totaled $1,709,527 during 1999.
Investments in new equipment related to the manufacture of fasteners accounted
for the majority of these investments and totaled $994,000 during the year.
Investments in hardware and software related to improved information management
technology totaled $267,000. A total of $181,000 was expended for the purchase
of a variety of test and inspection equipment related to quality control
initiatives. Investments in new machine tools used in the manufacture of
assembly equipment totaled $108,000. Approximately $41,000 was invested in new
telephone equipment and the balance was expended for the purchase, or repair, of
various, smaller machine tools and building repairs.

--------------------------------------------------------------------------------

 2
<PAGE>
MANAGEMENT'S DISCUSSION
(Continued)                                                 [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

    Depreciation expense amounted to $1,921,703 in 2001, $1,889,849 in 2000, and
$1,711,721 in 1999.

LIQUIDITY AND CAPITAL RESOURCES

    As of December 31, 2001, working capital was $11.6 million. While this is a
modest decline compared with the prior year, our current ratio (current assets
divided by current liabilities) improved to 3.7 from 3.5. The accounts
receivable balance at year-end declined substantially compared with the year
earlier, largely as a result of lower fourth quarter sales. Inventory levels,
which increased slightly during 2000, were significantly reduced during 2001,
and our objective is to further improve our ability to operate with lower levels
of inventory.

    In connection with a "Dutch auction" tender offer in April 2000, the Company
obtained, on an unsecured basis, a financing commitment that provided borrowing
capacity of up to $9.0 million plus a $1.0 million line of credit. The new
borrowing was used to finance the unpaid balance of a 1996 loan related to the
acquisition of H & L Tool Company, Inc. ($2.7 million) and to fund the purchase
of stock under the terms of the "Dutch auction." At December 31, 2001, the
indebtedness under the term loan was approximately $3.4 million. Under the terms
of the note, the Company is scheduled to repay the principal in quarterly
installments of $450,000, plus interest computed on the unpaid balance at a
variable rate that is calculated under one of two methods, selected at the
option of the Company: the London Inter-Bank Offering Rate (LIBOR) plus an
applicable margin; or the lender's prime rate, less an applicable margin. The
applicable margin is based upon the funded debt ratio and, for any portion of
the loan that bears interest at the prime rate, this margin is up to 50 basis
points, and for any portion that bears interest at the LIBOR rate, it is up to
130 basis points. This rate is adjusted quarterly and was approximately 2.9% at
December 31, 2001. Management believes that current cash, cash equivalents,
operating cash flow and the available line of credit will be sufficient to
provide adequate working capital for the foreseeable future.

    The Company has not entered into, and has no current plans to enter into,
any off-balance sheet financing arrangements. The Company has no long-term
supply contracts that will have a material impact on liquidity and financial
resources.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    Over time, the Company is exposed to market risks arising from changes in
interest rates. The Company has not historically used derivative financial
instruments. As of December 31, 2001, $3.43 million of floating-rate debt was
exposed to changes in interest rates compared to $5.23 million at the prior
year-end. This exposure was primarily linked to the London Inter-Bank Offering
Rate and the lender's prime rate under the Company's term loan. A hypothetical
10% change in these rates would not have had a material effect on the Company's
annual earnings.

NEW ACCOUNTING STANDARDS

    The Company's financial statements and financial condition were not, and are
not expected to be, materially impacted by any new, or proposed, accounting
standards.

STOCK PURCHASE PROGRAM

    Terms of a stock repurchase authorization originally approved by the Board
of Directors in February of 1990, and subsequently amended to permit the
repurchase of an aggregate of 200,000 shares, provide for purchases of the
Company's common stock to be made from time to time, in the open market or in
private transactions, at prices deemed reasonable by management. Purchases under
the current repurchase authorization have amounted to 161,996 shares at an
average price of $15.58 per share. Although no purchases were made during 2001,
it is management's intention to continue this program, provided funding for
repurchases is available and market conditions are favorable.

    In addition to the purchases described above, the Company purchased 159,564
shares at a price of $23.00 per share pursuant to a "Dutch auction" tender offer
completed in April 2000.

OUTLOOK FOR 2002

    The Company's fortunes remain closely tied to the level of industrial
activity in general, with an emphasis on North American automobile production.
While we anticipate that business conditions will improve, the timing and extent
of improvement continues to be uncertain. We have seen some firming in demand on
the fastener side of our business, but it has been customer specific, rather
than a broad-based improvement. Demand for automated assembly equipment and
related perishable tooling remains at very low levels. On an overall basis,
bookings for the first two months of this year lag the levels recorded during
the same period last year, apparently supporting those forecasts that suggest
the timing of the recovery will be later in the year. The prevailing conditions
foster intensified price competition and continued downward pressure on margins.

    We have responded by taking appropriate actions to reduce costs wherever
possible and to contain costs where reductions are not feasible. In addition, in
situations where it is both necessary and economically practical, we have
reduced our prices in order to meet competitive challenges and maintain our
market share. We have actively solicited new business within our existing
customer base as well as from

--------------------------------------------------------------------------------

                                                                               3
<PAGE>
MANAGEMENT'S DISCUSSION
(Continued)
--------------------------------------------------------------------------------

new customers. These efforts have met with varying degrees of success, and we
plan to follow a similar course of action in the coming months.

    Investments in new equipment to expand our capabilities in the manufacture
of specialty fasteners are finally beginning to bear fruit and should contribute
to both revenues and profits in 2002. We anticipated that this would have
occurred during 2001, but market conditions delayed realization by several
months. We are optimistic that sustainable shipments of these products will
begin late in the first quarter of this year.

    We are glad to leave 2001 behind us and look forward to the opportunities
that lie ahead. Certainly, the future will hold challenges as well as
opportunities, but we believe we are well prepared to meet those challenges and
to take advantage of the opportunities that will arise. We gratefully
acknowledge the support of our shareholders, the loyalty of our customers and
the contributions of our workforce -- for each of these elements has been
critical to our past success and each is essential for our future success.

                                     Respectfully,

<Table>
  <S>                                         <C>

        J. A. MORRISSEY                             JOHN C. OSTERMAN
       John A. Morrissey                            John C. Osterman
            Chairman                                   President
</Table>

March 1, 2002

FORWARD-LOOKING STATEMENTS

     This discussion contains certain "forward-looking statements" which are
inherently subject to risks and uncertainties that may cause actual events to
differ materially from those discussed herein. Factors which may cause such
differences in events include, among other things, our ability to maintain our
relationships with our significant customers; increases in the prices of, or
limitations on the availability of, our primary raw materials; or a downturn in
the automotive industry, upon which we rely for sales revenue, and which is
cyclical and dependent on, among other things, consumer spending, international
economic conditions and regulations and policies regarding international trade.
Many of these factors are beyond our ability to control or predict. Readers are
cautioned not to place undue reliance on these forward-looking statements. We
undertake no obligation to publish revised forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

--------------------------------------------------------------------------------

 4
<PAGE>

                                                            [CHICAGO RIVET LOGO]
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS

<Table>
<Caption>
-----------------------------------------------------------------------------------------------
                        DECEMBER 31                                2001                2000
-----------------------------------------------------------------------------------------------
<S>                                                             <C>                 <C>
                           ASSETS
Current Assets
  Cash and Cash Equivalents.................................    $ 4,692,999         $ 2,265,442
  Certificates of Deposit...................................        177,882           1,429,886
  Accounts Receivable--Less allowances of $240,000 and
     $90,000, respectively..................................      3,995,148           5,037,231
  Inventories...............................................      6,050,668           7,204,184
  Deferred Income Taxes.....................................        607,191             705,191
  Other Current Assets......................................        335,590             191,668
                                                                -----------         -----------
  Total Current Assets......................................     15,859,478          16,833,602
Net Property, Plant and Equipment...........................     13,818,535          14,323,517
                                                                -----------         -----------
Total Assets................................................    $29,678,013         $31,157,119
                                                                ===========         ===========

            LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
  Current Portion of Note Payable...........................    $ 1,800,000         $ 1,800,000
  Accounts Payable..........................................        929,634           1,065,561
  Accrued Wages and Salaries................................        751,582             753,577
  Contributions Due Profit Sharing Plan.....................        294,986             437,076
  Other Accrued Expenses....................................        384,110             774,974
  Federal and State Income Taxes Payable....................         82,742               1,123
                                                                -----------         -----------
  Total Current Liabilities.................................      4,243,054           4,832,311
Note Payable................................................      1,632,760           3,432,760
Deferred Income Taxes.......................................      1,429,275           1,373,275
                                                                -----------         -----------
  Total Liabilities.........................................      7,305,089           9,638,346
                                                                -----------         -----------
Commitments and Contingencies (Note 12)
Shareholders' Equity
  Preferred Stock, No Par Value, 500,000 Shares Authorized:
     None Outstanding.......................................             --                  --
  Common Stock, $1.00 Par Value, 4,000,000 Shares
     Authorized: 1,138,096 Shares Issued....................      1,138,096           1,138,096
  Additional Paid-in Capital................................        447,134             447,134
  Retained Earnings.........................................     24,682,816          23,828,665
  Treasury Stock, 170,964 Shares at cost....................     (3,895,122)         (3,895,122)
                                                                -----------         -----------
  Total Shareholders' Equity................................     22,372,924          21,518,773
                                                                -----------         -----------
Total Liabilities and Shareholders' Equity..................    $29,678,013         $31,157,119
                                                                ===========         ===========
</Table>

       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.

--------------------------------------------------------------------------------
                                                                               5
<PAGE>
[CHICAGO RIVET LOGO]
--------------------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF INCOME

<Table>
<Caption>
-----------------------------------------------------------------------------------------------
         FOR THE YEARS ENDED DECEMBER 31                 2001           2000           1999
-----------------------------------------------------------------------------------------------
<S>                                                   <C>            <C>            <C>
Net Sales and Lease Revenue.......................    $40,443,010    $45,423,263    $49,080,257
Cost of Goods Sold and Costs Related to Lease
  Revenue.........................................     31,255,964     33,480,233     35,718,882
                                                      -----------    -----------    -----------
Gross Profit......................................      9,187,046     11,943,030     13,361,375
Selling and Administrative Expenses...............      6,439,603      7,801,089      8,094,719
Other Expense, net................................         56,173        155,780         37,365
                                                      -----------    -----------    -----------
Income Before Income Taxes........................      2,691,270      3,986,161      5,229,291
Provision for Income Taxes........................        899,000      1,330,000      1,775,000
                                                      -----------    -----------    -----------
Net Income........................................    $ 1,792,270    $ 2,656,161    $ 3,454,291
                                                      ===========    ===========    ===========
Net Income Per Share..............................    $      1.85    $      2.60    $      3.00
                                                      ===========    ===========    ===========
</Table>

CONSOLIDATED STATEMENTS OF
RETAINED EARNINGS

<Table>
<S>                                                   <C>            <C>            <C>
Retained Earnings at Beginning of Year............    $23,828,665    $22,302,048    $20,405,979
Net Income........................................      1,792,270      2,656,161      3,454,291
Treasury Stock Retired............................             --             --       (325,793)
Cash Dividends Paid, $.97 Per Share in 2001, $1.07
  Per Share in 2000 and $1.07 Per Share in 1999...       (938,119)    (1,129,544)    (1,232,429)
                                                      -----------    -----------    -----------
Retained Earnings at End of Year..................    $24,682,816    $23,828,665    $22,302,048
                                                      ===========    ===========    ===========
</Table>

       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.

--------------------------------------------------------------------------------
 6
<PAGE>
                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF CASH FLOWS

<Table>
<Caption>
         ---------------------------------------------------------------------------------------------------
                      FOR THE YEARS ENDED DECEMBER 31                   2001          2000          1999
         ---------------------------------------------------------------------------------------------------
         <S>                                                         <C>           <C>           <C>
         Cash Flows from Operating Activities:
         Net Income................................................  $ 1,792,270   $ 2,656,161   $ 3,454,291
         Adjustments to Reconcile Net Income to Net Cash Provided
           by Operating Activities:
           Depreciation and Amortization...........................    1,921,703     1,889,849     1,711,721
           Net Gain on the Sale of Properties......................      (42,917)       (2,439)       (6,690)
           Deferred Income Taxes...................................      154,000        45,000        30,000
           Changes in Operating Assets and Liabilities:
             Accounts Receivable...................................    1,042,083     1,644,428      (198,445)
             Inventories...........................................    1,153,516      (280,463)     (393,974)
             Other Current Assets..................................     (143,922)       54,329       (10,848)
             Accounts Payable......................................     (135,927)     (372,586)      165,685
             Accrued Wages and Salaries............................       (1,995)      (39,029)       47,448
             Accrued Profit Sharing Plan Contributions.............     (142,090)     (231,977)      122,975
             Other Accrued Expenses................................     (390,864)      174,401        11,238
             Income Taxes Payable..................................       81,619      (764,530)      349,839
                                                                     -----------   -----------   -----------
                  Net Cash Provided by Operating Activities........    5,287,476     4,773,144     5,283,240
                                                                     -----------   -----------   -----------
         Cash Flows from Investing Activities:
           Capital Expenditures....................................   (1,431,698)   (2,125,189)   (1,709,527)
           Proceeds from the Sale of Properties....................       57,894        22,225        41,288
           Proceeds from Held-to-Maturity Securities...............    3,815,989     2,506,327     6,151,774
           Purchases of Held-to-Maturity Securities................   (2,563,985)   (3,383,619)   (6,154,114)
                                                                     -----------   -----------   -----------
                  Net Cash Used in Investing Activities............     (121,800)   (2,980,256)   (1,670,579)
                                                                     -----------   -----------   -----------
         Cash Flows from Financing Activities:
           Borrowings under Term Loan Agreement....................           --     3,882,760            --
           Payments under Term Loan Agreement......................   (1,800,000)   (1,800,000)   (1,800,000)
           Purchases of Treasury Stock.............................           --    (3,895,122)     (347,243)
           Cash Dividends Paid.....................................     (938,119)   (1,129,544)   (1,232,429)
                                                                     -----------   -----------   -----------
                  Net Cash Used in Financing Activities............   (2,738,119)   (2,941,906)   (3,379,672)
                                                                     -----------   -----------   -----------
         Net Increase (Decrease) in Cash and Cash Equivalents......    2,427,557    (1,149,018)      232,989
         Cash and Cash Equivalents:
           Beginning of Year.......................................    2,265,442     3,414,460     3,181,471
                                                                     -----------   -----------   -----------
           End of Year.............................................  $ 4,692,999   $ 2,265,442   $ 3,414,460
                                                                     ===========   ===========   ===========
           Cash Paid During the Year for:
             Income Taxes..........................................  $   663,381   $ 2,049,530   $ 1,395,161
             Interest..............................................  $   354,649   $   288,769   $   264,684
</Table>

       THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE CONSOLIDATED FINANCIAL
STATEMENTS.

--------------------------------------------------------------------------------
                                                                               7
<PAGE>

[CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS

1--NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

NATURE OF BUSINESS--The Company operates in the fastener industry and is in the
business of producing and selling rivets, cold-formed fasteners, screw machine
products, automatic rivet setting machines, parts and tools for such machines,
and the leasing of automatic rivet setting machines.

A SUMMARY OF THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES FOLLOWS:

PRINCIPLES OF CONSOLIDATION--The consolidated financial statements include the
accounts of Chicago Rivet & Machine Co. and its wholly-owned subsidiary, H & L
Tool Company, Inc. (H & L Tool). All significant intercompany accounts and
transactions have been eliminated.

REVENUE RECOGNITION--Revenues from product sales are recognized upon shipment
and an allowance is provided for estimated returns and discounts based on
experience.

LEASE INCOME--Automatic rivet setting machines are available to customers on
either a sale or lease basis. The leases, generally for a one-year term, are
cancelable at the option of the Company or the customer and are accounted for
under the operating method, which recognizes lease revenue over the term of the
lease. Rentals are billed in advance, and revenues attributable to future
periods are included in unearned revenue in the consolidated balance sheets.
Costs related to lease revenue, other than the cost of the machines, are
expensed as incurred.

CREDIT RISK--The Company extends credit primarily on the basis of 30-day terms
to various companies doing business primarily in the automotive industry. The
Company has a concentration of credit risk primarily within the automotive
industry and in the Midwestern United States.

CASH AND CASH EQUIVALENTS--The Company considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents.

FAIR VALUE OF FINANCIAL INSTRUMENTS--The carrying amounts reported in the
consolidated balance sheets for cash and cash equivalents and certificates of
deposit approximate fair value. The carrying amount reported for the note
payable approximates fair market value.

INVENTORIES--Inventories are stated at the lower of cost or net realizable
value, cost being determined principally by the first-in, first-out method.

PROPERTY, PLANT AND EQUIPMENT--Properties are stated at cost and are depreciated
over their estimated useful lives using the straight-line method for financial
reporting purposes. Accelerated methods of depreciation are used for income tax
purposes. Direct costs related to developing or obtaining software for internal
use are capitalized as property and equipment. Capitalized software costs are
amortized over the software's useful life when the software is ready for its
intended use. The estimated useful lives by asset category are:

Asset category                                             Estimated useful life
------------------------------------------------------------

<Table>
<S>                                          <C>
Land improvements...........................    15 to 25 years
Buildings and improvements..................    10 to 35 years
Machinery and equipment.....................     7 to 15 years
Automatic rivet setting machines on lease...          10 years
Capitalized software costs..................      3 to 5 years
Other equipment.............................     3 to 15 years
</Table>

The Company reviews the carrying value of property, plant and equipment for
impairment whenever events and circumstances indicate that the carrying value of
an asset may not be recoverable from the estimated future cash flows expected to
result from its use and eventual disposition. In cases where undiscounted
expected future cash flows are less than the carrying value, an impairment loss
is recognized equal to an amount by which the carrying value exceeds the fair
value of assets.

When properties are retired or sold, the related cost and accumulated
depreciation are removed from the respective accounts, and any gain or loss on
disposition is recognized currently. Maintenance, repairs and minor betterments
that do not improve the related asset or extend its useful life are charged to
operations as incurred.

INCOME TAXES--Deferred income taxes are determined under the asset and liability
method in accordance with Statement of Financial Accounting Standards No. 109,
"Accounting for Income Taxes." Deferred income taxes arise from temporary
differences between the income tax basis of assets and liabilities and their
reported amounts in the financial statements.

SEGMENT INFORMATION--The Company reports segment information in accordance with
Statement of Financial Accounting Standards No. 131 ("FAS 131"), "Disclosures
about Segments of an Enterprise and Related Information." FAS 131 requires that
segments be based on the internal structure and reporting of the Company's
operations.

NET INCOME PER SHARE--Net income per share of common stock is based on the
weighted average number of shares outstanding of 967,132 in 2001, 1,022,627 in
2000 and 1,151,333 in 1999.

ESTIMATES--The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and the
accompanying notes. Actual results could differ from those estimates.

--------------------------------------------------------------------------------
 8
<PAGE>

                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

2--BALANCE SHEET DETAILS

<Table>
<Caption>
                                      2001            2000
                                  ------------    ------------
<S>                               <C>             <C>
Inventories:
  Raw materials.................  $ 1,649,051     $ 2,010,984
  Work in process...............    1,766,068       2,156,092
  Finished goods................    2,635,549       3,037,108
                                  -----------     -----------
                                  $ 6,050,668     $ 7,204,184
                                  ===========     ===========
Net Property, Plant and
  Equipment:
  Land and improvements.........  $ 1,010,595     $ 1,010,595
  Buildings and improvements....    5,738,460       5,677,680
  Production equipment, leased
    machines and other..........   27,958,777      26,686,705
                                  -----------     -----------
                                   34,707,832      33,374,980
Less accumulated depreciation...   20,889,297      19,051,463
                                  -----------     -----------
                                  $13,818,535     $14,323,517
                                  ===========     ===========
Other Accrued Expenses:
  Property taxes................  $   120,189     $   114,490
  Interest......................        7,688         105,497
  Unearned revenue and customer
    deposits....................       99,733         355,874
  All other items...............      156,500         199,113
                                  -----------     -----------
                                  $   384,110     $   774,974
                                  ===========     ===========
</Table>

3--LEASED MACHINES--Lease revenue amounted to $225,948 in 2001, $246,940 in 2000
and $283,269 in 1999. Future minimum rentals on leases beyond one year are not
significant. The cost and carrying value of leased automatic rivet setting
machines at December 31 were:

<Table>
<Caption>
                                          2001         2000
                                        ---------    ---------
<S>                                     <C>          <C>
Cost..................................  $506,208     $531,509
Accumulated depreciation..............   465,884      484,956
                                        --------     --------
Carrying value........................  $ 40,324     $ 46,553
                                        ========     ========
</Table>

4--INCOME TAXES--The provision for income tax expense consists of the following:

<Table>
<Caption>
                              2001         2000          1999
                            ---------   -----------   -----------
<S>                         <C>         <C>           <C>
Current:
  Federal.................  $ 739,000   $ 1,271,000   $ 1,639,000
  State...................      6,000        14,000       106,000
Deferred..................    154,000        45,000        30,000
                            ---------   -----------   -----------
                            $ 899,000   $ 1,330,000   $ 1,775,000
                            =========   ===========   ===========
</Table>

The deferred tax liabilities and assets consist of the following:

<Table>
<Caption>
                                      2001            2000
                                  ------------    ------------
<S>                               <C>             <C>
Depreciation....................  $(1,444,861)    $(1,392,656)
                                  -----------     -----------
Inventory.......................      329,485         475,255
Accrued vacation................      175,866         176,033
Allowance for doubtful
  accounts......................       83,800          31,300
Other, net......................       33,626          41,984
                                  -----------     -----------
                                      622,777         724,572
                                  -----------     -----------
                                  $  (822,084)    $  (668,084)
                                  ===========     ===========
</Table>

The following is a reconciliation of the statutory federal income tax rate to
the actual effective tax rate:

<Table>
<Caption>
                                    2001               2000                1999
                               ---------------   -----------------   -----------------
                                AMOUNT     %       AMOUNT      %       AMOUNT      %
                               ---------------   -----------------   -----------------
<S>                            <C>        <C>    <C>          <C>    <C>          <C>
Expected tax at U.S.
 Statutory rate..............  $915,000   34.0   $1,355,000   34.0   $1,778,000   34.0
State taxes, net of federal
 benefit.....................     4,000     .1        9,000     .2       73,000    1.4
Other, net...................     5,000     .2        5,000     .1        5,000     --
Adjustment to prior year
 accrual.....................   (25,000)   (.9)     (39,000)   (.9)     (81,000)  (1.5)
                               --------   ----   ----------   ----   ----------   ----
Income tax expense...........  $899,000   33.4   $1,330,000   33.4   $1,775,000   33.9
                               ========   ====   ==========   ====   ==========   ====
</Table>

5--NOTE PAYABLE--In connection with the tender offer completed in April 2000,
the Company obtained, on an unsecured basis, a financing commitment that
provided borrowing capacity of up to $9.0 million plus a $1.0 million line of
credit. The new borrowing was used to repay an existing loan ($2.7 million) and
to fund purchases of stock under the terms of a "Dutch auction." As of December
31, 2001, total indebtedness under the term loan was $3,432,760. Under the terms
of the note evidencing such debt, the Company will repay the principal in
quarterly installments of $450,000, plus interest computed on the unpaid balance
at a variable rate that is based upon, at the election of the Company, the Bank
of America's prime rate less an applicable margin or the London Inter-Bank
Offering Rate (LIBOR) plus an applicable margin. The applicable margin is based
upon the funded debt ratio. For any portion of the loan that bears interest at
the prime rate, this margin is up to 50 basis points, for any portion of the
loan that bears interest at the LIBOR rate, the margin is up to 130 basis
points. The interest rate is adjusted quarterly and was approximately 2.9% at
December 31, 2001. This note is subject to the maintenance of certain financial
covenants, including net worth, funded debt ratio and debt coverage ratio. The
line of credit was extended through May 31, 2002 and remained unused at December
31, 2001. The loan agreement expires on March 1, 2005, at which time any unpaid
principal and interest is due.

6--TREASURY STOCK TRANSACTIONS--In 2000, the Company purchased 170,964 shares of
its common stock for $3,895,122. These shares are being held in treasury. In
1999, the Company purchased 15,400 common shares for $347,243. The stock
purchased in 1999 was retired and the excess of cost over par value was charged
proportionately to additional paid-in capital and retained earnings. In 2001, no
shares were purchased.

7--SHAREHOLDER RIGHTS AGREEMENT--On November 22, 1999, the Company adopted a
shareholder rights agreement and declared a dividend distribution of one right
for each outstanding share of Company common stock to shareholders of record at
the close of business on December 3, 1999. Each right entitles the holder, upon
occurrence of certain events, to buy one one-hundredth of a share of Series A
Junior Participating Preferred Stock at a price of $90, subject to adjustment.
The rights may only become exercisable under certain circumstances involving
acquisition of the Company's common stock, including the purchase of 10 percent
or more by any person or group. The rights will expire on December 2, 2009
unless they are extended, redeemed or exchanged.

8--PROFIT SHARING PLAN--The Company has a noncontributory profit sharing plan
covering substantially all employees. Total expenses relating to the profit
sharing plan amounted to approximately $295,000 in 2001, $437,000 in 2000 and
$669,000 in 1999.

--------------------------------------------------------------------------------
                                                                               9
<PAGE>

[CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

9--OTHER EXPENSE, NET--Other expense, net consists of the following:

<Table>
<Caption>
                               2001         2000         1999
                            ----------   ----------   ----------
<S>                         <C>          <C>          <C>
Interest income...........  $  145,233   $  202,915   $  196,769
Interest expense..........    (259,840)    (378,640)    (255,908)
Gain on sale of property
  and equipment...........      42,917        2,439        6,690
Other.....................      15,517       17,506       15,084
                            ----------   ----------   ----------
                            $  (56,173)  $ (155,780)  $ ( 37,365)
                            ==========   ==========   ==========
</Table>

10--SEGMENT INFORMATION--The Company operates, primarily in the United States,
in two business segments as determined by its products. The fastener segment,
which comprises H & L Tool and the parent company's fastener operations,
includes rivets, cold-formed fasteners and screw machine products. The assembly
equipment segment includes automatic rivet setting machines, parts and tools for
such machines and the leasing of automatic rivet setting machines. Information
by segment is as follows:

<Table>
<Caption>
                                         ASSEMBLY
                          FASTENER       EQUIPMENT        OTHER      CONSOLIDATED
                         -----------   -------------   -----------   ------------
<S>                      <C>           <C>             <C>           <C>
YEAR ENDED
 DECEMBER 31, 2001:
Net sales and lease
 revenue...............  $32,704,142    $ 7,738,868    $        --   $40,443,010
Depreciation...........    1,446,254        242,517        232,932     1,921,703
Segment profit.........    3,892,772      1,860,559             --     5,753,331
Selling and
 administrative
 expenses..............                                  2,947,454     2,947,454
Interest expense.......                                    259,840       259,840
Interest income........                                   (145,233)     (145,233)
                                                                     -----------
Income before income
 taxes.................                                                2,691,270
                                                                     -----------
Capital expenditures...    1,283,566         17,209        130,923     1,431,698
Segment assets:
 Inventory.............    3,636,677      2,413,991             --     6,050,668
 Property, plant and
   equipment...........   10,741,793      1,737,603      1,339,139    13,818,535
 Other assets..........           --             --      9,808,810     9,808,810
                                                                     -----------
                                                                      29,678,013
                                                                     -----------
YEAR ENDED
 DECEMBER 31, 2000:
Net sales and lease
 revenue...............  $35,735,699    $ 9,687,564    $        --   $45,423,263
Depreciation...........    1,399,029        254,398        236,422     1,889,849
Segment profit.........    4,878,808      3,070,744             --     7,949,552
Selling and
 administrative
 expenses..............                                  3,787,666     3,787,666
Interest expense.......                                    378,640       378,640
Interest income........                                   (202,915)     (202,915)
                                                                     -----------
Income before income
 taxes.................                                                3,986,161
                                                                     -----------
Capital expenditures...    1,933,638        150,372         41,179     2,125,189
Segment assets:
 Inventory.............    4,401,873      2,802,311             --     7,204,184
 Property, plant and
   equipment...........   10,898,517      1,965,616      1,459,384    14,323,517
 Other assets..........           --             --      9,629,418     9,629,418
                                                                     -----------
                                                                      31,157,119
                                                                     -----------
</Table>

<Table>
<Caption>
                                         ASSEMBLY
                          FASTENER       EQUIPMENT        OTHER      CONSOLIDATED
                         -----------   -------------   -----------   ------------
<S>                      <C>           <C>             <C>           <C>
YEAR ENDED
 DECEMBER 31, 1999:
Net sales and lease
 revenue...............  $37,486,536    $11,593,721    $        --   $49,080,257
Depreciation...........    1,255,975        252,772        202,974     1,711,721
Segment profit.........    4,882,568      4,232,296             --     9,114,864
Selling and
 administrative
 expenses..............                                  3,826,434     3,826,434
Interest expense.......                                    255,908       255,908
Interest income........                                   (196,769)     (196,769)
                                                                     -----------
Income before income
 taxes.................                                                5,229,291
                                                                     -----------
Capital expenditures...    1,464,857        150,387         94,283     1,709,527
Segment assets:
 Inventory.............    4,269,533      2,654,188             --     6,923,721
 Property, plant and
   equipment...........   10,778,383      1,672,189      1,657,391    14,107,963
 Other assets..........           --             --     11,589,901    11,589,901
                                                                     -----------
                                                                      32,621,585
                                                                     -----------
</Table>

     The Company does not allocate certain selling and administrative expenses
for internal reporting, thus, no allocation was made for these expenses for
segment disclosure purposes. Segment assets reported internally are limited to
inventory and long-lived assets. Long-lived assets of one plant location are
allocated between the two segments based on estimated plant utilization, as this
plant serves both fastener and assembly equipment activities. Other assets are
not allocated to segments internally and to do so would be impracticable. Sales
to two customers in the fastener segment accounted for 18, 19 and 17 percent and
14, 11 and 11 percent of consolidated revenues during 2001, 2000 and 1999,
respectively. Sales to a third customer amounted to 10 percent in 2001.

11--OTHER UNUSUAL ITEMS OF INCOME AND EXPENSE--Fourth quarter net income
includes the net favorable (unfavorable) effect of certain adjustments related
to inventory and certain accruals of $(.02), $.10 and $.09 per share, for 2001,
2000 and 1999, respectively.

12--COMMITMENTS AND CONTINGENCIES--The Company recorded rent expense aggregating
approximately $40,000, $36,000 and $29,000 for 2001, 2000 and 1999,
respectively. Total future minimum rentals at December 31, 2001 are not
significant.

The Company is, from time to time involved in litigation, including
environmental claims, in the normal course of business. While it is not possible
at this time to establish the ultimate amount of liability with respect to
contingent liabilities, including those related to legal proceedings, management
is of the opinion that the aggregate amount of any such liabilities, for which
provision has not been made, will not have a material adverse effect on the
Company's financial position.

13--NEW ACCOUNTING STANDARDS--The Company has reviewed Statement of Financial
Accounting Standards No. 143, "Accounting for Asset Retirement Obligations" and
Statement of Financial Accounting Standards No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" and has determined that their
implementation will not materially impact the financial statements.

--------------------------------------------------------------------------------
 10
<PAGE>

                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders of
Chicago Rivet & Machine Co.

    In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of income, retained earnings and cash flows present
fairly, in all material respects, the financial position of Chicago Rivet &
Machine Co. and its subsidiary at December 31, 2001 and 2000, and the results of
their operations and their cash flows for each of the three years in the period
ended December 31, 2001 in conformity with accounting principles generally
accepted in the United States of America. These financial statements are the
responsibility of the Company's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with auditing standards generally
accepted in the United States of America, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.

PRICE WATERHOUSE LLP

Chicago, Illinois
March 1, 2002

SELECTED FINANCIAL DATA

<Table>
<Caption>
-------------------------------------------------------------------------------------------------------------------------------
                                                           2001           2000           1999           1998           1997
-------------------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>            <C>            <C>            <C>            <C>
Net Sales and Lease Revenue                             $40,443,010    $45,423,263    $49,080,257    $44,938,184    $44,543,404
-------------------------------------------------------------------------------------------------------------------------------
Income Before Income Taxes                                2,691,270      3,986,161      5,229,291      5,077,480      6,044,510
-------------------------------------------------------------------------------------------------------------------------------
Net Income                                                1,792,270      2,656,161      3,454,291      3,360,480      3,861,510
-------------------------------------------------------------------------------------------------------------------------------
Net Income Per Share                                           1.85           2.60           3.00           2.90           3.30
-------------------------------------------------------------------------------------------------------------------------------
Dividends Per Share                                             .97           1.07           1.07           1.12            .91
-------------------------------------------------------------------------------------------------------------------------------
Average Common Shares Outstanding                           967,132      1,022,627      1,151,333      1,159,360      1,170,988
-------------------------------------------------------------------------------------------------------------------------------
Working Capital                                          11,616,424     12,001,291     12,447,590     12,302,179     13,766,681
-------------------------------------------------------------------------------------------------------------------------------
Total Debt                                                3,432,760      5,232,760      3,150,000      4,950,000      6,750,000
-------------------------------------------------------------------------------------------------------------------------------
Total Assets                                             29,678,013     31,157,119     32,621,585     31,815,781     32,947,460
-------------------------------------------------------------------------------------------------------------------------------
Shareholders' Equity                                     22,372,924     21,518,773     23,887,278     22,012,659     20,511,102
-------------------------------------------------------------------------------------------------------------------------------
</Table>

--------------------------------------------------------------------------------
                                                                              11
<PAGE>

[CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------
QUARTERLY FINANCIAL DATA (UNAUDITED)

<Table>
<Caption>
                           1ST           2ND           3RD           4TH
                         QUARTER       QUARTER       QUARTER       QUARTER
                       -----------   -----------   -----------   -----------
<S>                    <C>           <C>           <C>           <C>
2001
Net Sales and Lease
 Revenue.............  $10,627,831   $11,216,249   $ 9,398,572   $ 9,200,358
Gross Profit.........    2,249,917     2,819,622     2,330,542     1,786,965
Net Income...........      339,241       737,438       426,996       288,595
Per Share Data:
 Net Income Per
   Share.............          .35           .76           .44           .30
 Average Common
   Shares
   Outstanding.......      967,132       967,132       967,132       967,132

2000
Net Sales and Lease
 Revenue.............  $12,435,736   $12,366,088   $10,345,570   $10,275,869
Gross Profit.........    3,543,512     3,646,726     2,262,689     2,490,103
Net Income...........      921,435       894,713       274,583       565,430
Per Share Data:
 Net Income Per
   Share.............          .81           .89           .28           .58
 Average Common
   Shares
   Outstanding.......    1,138,096     1,003,080       978,532       971,841

1999
Net Sales and Lease
 Revenue.............  $12,517,480   $12,933,690   $11,721,458   $11,907,629
Gross Profit.........    3,643,041     2,758,165     3,297,581     3,662,588
Net Income...........    1,152,460       481,112       816,774     1,003,945
Per Share Data:
 Net Income Per
   Share.............         1.00           .42           .71           .87
 Average Common
   Shares
   Outstanding.......    1,153,496     1,152,832     1,152,139     1,147,005
</Table>

INFORMATION ON COMPANY'S COMMON STOCK

The Company's common stock is traded on the American Stock Exchange. The
following table shows the dividends declared and the quarterly high and low
prices of the common stock for the last two years.

<Table>
<Caption>
                        Dividends
                         Declared                  Market Range
                       ----------------------------------------------------
QUARTER                2001    2000          2001                2000
-------                ----    ----    ----------------    ----------------
<S>                    <C>     <C>     <C>       <C>       <C>       <C>
First................  $.43*   $.53*   $21.50    $16.50    $23.25    $19.00
Second...............   .18     .18    $19.70    $18.70    $23.25    $21.13
Third................   .18     .18    $22.75    $19.00    $23.00    $19.50
Fourth...............   .18     .18    $22.90    $20.00    $19.88    $16.13
</Table>

---------------
* Includes an extra dividend of $.25 and $.35 per share in 2001 and 2000,
  respectively.

At December 31, 2001, there were approximately 344 shareholders of record.

--------------------------------------------------------------------------------
 12
<PAGE>

                                                            [CHIGAGO RIVET LOGO]
--------------------------------------------------------------------------------

BOARD OF DIRECTORS

EDWARD L. CHOTT(a)
Chairman and Chief
Executive Officer of
The Broaster Co.
Beloit, Wisconsin
NIRENDU DHAR
General Manager of
H & L Tool Company, Inc.
WILLIAM T. DIVANE, JR.(a)(c)
Chairman of the Board and
Chief Executive Officer of
Divane Bros. Electric Co.
Franklin Park, Illinois
JOHN R. MADDEN(a)(c)(e)
Chairman of the Board of
The First National Bank
of La Grange
La Grange, Illinois
JOHN A. MORRISSEY(e)
Chairman of the Board
of the Company
President and Director of
Algonquin State Bank
Algonquin, Illinois
WALTER W. MORRISSEY(c)(e)
Attorney at Law
Morrissey & Robinson
Oakbrook Terrace, Illinois
JOHN C. OSTERMAN(e)
President of the Company
CORPORATE OFFICERS
JOHN A. MORRISSEY
Chairman, Chief
Executive Officer
JOHN C. OSTERMAN
President, Chief Operating
Officer and Treasurer
NIRENDU DHAR
General Manager of
H & L Tool Company, Inc.
DONALD P. LONG
Vice President-Sales
KIMBERLY A. KIRHOFER
Secretary
MICHAEL J. BOURG
Corporate Controller

CHICAGO RIVET & MACHINE CO.

ADMINISTRATIVE & SALES OFFICES
Naperville, Illinois
Norwell, Massachusetts
MANUFACTURING FACILITIES
Albia Division
Albia, Iowa

Jefferson Division
Jefferson, Iowa

Tyrone Division
Tyrone, Pennsylvania

H & L Tool Company, Inc.
Madison Heights, Michigan
WEB SITE
www.chicagorivet.com

(a) Member of Audit Committee
(c) Member of Compensation Committee
(e) Member of Executive Committee

Chicago Rivet & Machine Co. - 901 Frontenac Road - P.O. Box 3061 - Naperville,
Illinois 60566 - Telephone: (630) 357-8500

--------------------------------------------------------------------------------
<PAGE>

                              [CHICAGO RIVET LOGO]

 Chicago Rivet & Machine Co. - 901 Frontenac Road - P.O. Box 3061 - Naperville,
                   Illinois 60566 - Telephone: (630) 357-8500